A modern hierarchical org chart visually portrays a company’s internal structure from the top down—C-suite executives, upper-level management, mid-tier employees, and entry-level positions. The purpose of a template organization chart is to show each employee’s work responsibilities and how each position relates to others. It also allows the company executives to manage any upcoming changes or plan for growth.

When looking at an organizational chart, you’ll notice that a shape or image represents each person’s role. Each symbol will exist above, below, and next to other symbols, which are often connected by lines—above are their managers and bosses, below are their assistants, juniors, and direct reports, and each horizontal line represents a tier of equals, in terms of responsibility and hierarchy.

For example, at the top of a company, you’d see the Chief Executive Officer. Beneath that role, you might see a line of Vice Presidents—the VP of Sales, Marketing, Product Development, Finance, etc. Underneath each of these VP positions, you’d find an entire department, starting with the Senior Manager, then perhaps a Junior Manager, then a Specialist, then an Associate. The titles and relational structure will change for every company and every department.

So when should an organizational chart be updated? You might choose to update it regularly—monthly, quarterly, or bi-annually, depending on your speed of growth—or every time you expand or switch around your company’s hierarchy.

For an easy jumping-off point, download FigJam’s org chart template—free of charge. Whether your company is just getting its legs or has been around for generations, you can build an organizational chart that clearly defines each person’s role and begin improving communication between employees and departments.

Update your organization chart template regularly to reflect any changes in reporting structure, department shifts, job titles, or roles. Whether you're making updates quarterly or annually, it's important to keep your organization chart up to date to understand how different team members fit into the organization, who to communicate for specific questions, and which stakeholders to involve within the decision-making process.

An organizational chart helps individuals understand who is responsible for specific tasks, who to communicate with for specific questions, and who has the authority to make specific decisions. Establishing this visibility promotes collaboration and communication amongst different team members.

Using a hierarchy chart can help visualize different reporting relationships and present opportunities for team members to take on additional roles and responsibilities.

Best practices for effective organizational chart templates include:

• Use a hierarchy-style chart. Build out your business from the top down to visually represent the flow of different departments or team members.
• Keep job titles clear, concise, and consistent -  team members with the same job title should have similar responsibilities.
• Keep your organizational chart up to date to ensure everyone is on the same page.

Make the chart easily accessible. Ensure all team members can access the organizational chart to promote transparency and accountability.